Google in talks to buy YouTube for 1.6 billion dollars

SAN FRANCISCO (AFP) - The YouTube video-sharing website and Google internet giant sternly declined to comment on reports that they were discussing a 1.6 billion dollar takeover by Google. YouTube workers ejected a television news camera crew that made its way into the popular website’s non-descript office in the heart of San Francisco.

“We do not comment on rumor and speculation,” said Google spokesman Jon Murchinson.

The young website was in the spotlight as the result of a Wall Street Journal report citing an inside source as saying Google was courting YouTube to the tune of 1.6 billion dollars.

The discussions between the companies remained “delicate” and could be stopped, the daily newspaper quoted the source as saying.

The report reinforced rumour that circulated in financial markets and the weblogs of high-tech industry watchers.

On the TechCrunch weblog, Michael Arrington claimed to have received an e-mail from “a very good source” indicating that Google’s acquisition of YouTube was in its final stages.

YouTube soared to online popularity after its launch in February of 2005. The company claims that more than 100 million videos are watched daily by visitors to the free website, which features content provided by users.

The challenge for YouTube has become finding ways to make money off its broad range of online visitors, according to analysts.

By purchasing YouTube, Silicon Valley based Google would be able to apply its proven prowess for generating revenue through online advertising.

It would also be a formidable alliance of two of the Internet’s major video sharing sites.

// October 7th, 2006